Honda Motorcycle to expand capacity at Manesar plant

Chennai: Honda Motorcycle & Scooter India(HMSI), the wholly owned subsidiary of Honda Motor Company of Japan, plans to enhance capacity to 1.5 million units at its Manesar plant in three years.

Speaking to presspersons on the sidelines of the launch of its motor sports activities at Irrungattukottai race track, about 40 km from here, the President and CEO of HMSI, Mr Shinji Aoyama, said the company would be investing Rs 300 crore during the next three years to enhance capacity from the present 1.2 million units.

The company has spent Rs 900 crore since inception about eight years ago, he said.

During the first half of this fiscal, the company could achieve 50 per cent of its annual target of 1.05 million units. While scooters continue to contribute a major share, the market response for the new offering 125-cc CBF Stunner is encouraging, he said. The company sold about 35,000 units since its launch about three months ago and it hopes to ramp up volumes due to demand, he said.

More than half of the sales in the half-year ended September came from Activa and the rest was contributed by other models such as Aviator, Dio, Eterno, Shine, Stunner and Unicorn.

Geared scooters were losing their charm in the two-wheeler market and HMSI’s offering Eterno began witnessing drop in sales. However, the company did not stall production due to demand from select pockets, he said.

Mr Aoyama, said entry into motor sport in India made HMSI to sync with Honda Motor Company’s global strategy focusing on environment conservation, safety and expansion of fun areas.

HMSI will soon commence exports of its new motorcycle offering CBF Stunner.

Mr Aoyama, said the first shipment of CBF Stunner would commence in a few days. Initially, the model would be exported to Europe, he said.

The company plans to export 50,000 two-wheelers this year, of which about 20 per cent will be Stunner, he said. Last year, it exported 35,000 units, he added.